Oil & Natural Gas Corporation (ONGC IN) – Q2FY27 Result Update – Volume guidance maintained – ACCUMULATE
Published on 07 Nov 2026
Oil and gas production volumes (including JVs) came in inline with our est. at 4.9MMT and 4.9bcm (PLe: 5.0mmt and 4.9bcm), respectively. Crude realization came in at USD92.3/bbl (PLe: USD91.8/bbl). Revenue was inline with estimates at INR438.8bn (PLe: INR434.7bn; BBGe: INR441.5bn), down 5.6% QoQ and up 32.8% YoY. EBITDA was largely inline with estimates but declined 10.6% QoQ and increased 48.7% YoY to INR263.2bn (PLe: INR260.2bn; BBGe: INR268.3bn). PAT came above estimates at INR154.9bn (PLe: INR141.5bn; BBGe: INR136.7bn), declining 9.1% QoQ but growing 57.3% YoY, supported by higher other income and a lower tax. We maintain our FY27/FY28E standalone oil production estimates at 18.8/19.8mmt and gas production estimates at 19.4/20.4bcm, respectively. For FY29E, we estimate oil and gas production at 20.2mmt and 21.5bcm, respectively. Maintain 'Accumulate' rating with a revised TP of INR260 (earlier: INR250), based on 7x Sep’28E EPS for the standalone business, along with the value of investments.
